Price: Understanding and Capturing Customer Value

Value-based pricing uses buyers' perceived 

value, rather than selling costs, as the key to 

pricing. Meaning that marketers cannot 

design a product or marketing program and 

then set a price. Price is calculated together 

with other marketing mix variables before 

the marketing program is determined. 

Pricing based on cost-plus is the simplest 

pricing, namely adding a markup price 

(profit to be obtained) to production costs. 

Companies that use value-based pricing